Penguin Solutions, Inc. cash flow to debt ratio of 14.88% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Penguin Solutions, Inc.'s free cash flow has increased 73.25% from $57.76M last year to $100.07M, signaling increasing performance

Penguin Solutions, Inc.'s debt to equity ratio is 1.14, which means that the company's assets are unhealthy financed, signaling financial risk.

Penguin Solutions, Inc.'s debt has decreased relative to shareholder equity from 1.85 last year to 1.14 today, signaling strengthened financials

Penguin Solutions, Inc. has a net debt to EBITDA ratio of 2.48x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Penguin Solutions, Inc.'s interest coverage ratio of 71.83 indicates that earnings with good margin can cover interest payments on company debt

Penguin Solutions, Inc.'s profit margin was -4.48% last year and is 6.43% this year, signaling increasing performance

Penguin Solutions, Inc.'s short-term assets of $1.06B exceed its short-term liabilities of $473.90M

Penguin Solutions, Inc.'s return on assets of 4.41% is lower than the 5.00% threshold, indicating inefficient asset utilization

Penguin Solutions, Inc.'s return on equity of 17.37%, is higher than 15.00%, indicating good performance

Penguin Solutions, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Penguin Solutions, Inc. has insufficient public price history to evaluate earnings stability.

Penguin Solutions, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Penguin Solutions, Inc. has a free cash flow yield of 3.47%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Penguin Solutions, Inc.'s yearly earnings has increased 141.12% since last year from $-52.47M to $21.58M, signaling increasing performance

Penguin Solutions, Inc.'s yearly revenue has increased 16.91% since last year from $1.17B to $1.37B, signaling increasing performance

ROIC 7.57% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Penguin Solutions, Inc.'s 3-year revenue CAGR of -0.65% is negative, indicating declining revenue over the past 3 years

Penguin Solutions, Inc. has insufficient public price history to evaluate revenue consistency.

Penguin Solutions, Inc. has insufficient public price history to evaluate ROE consistency.

Penguin Solutions, Inc. is overvalued relative to its fair value price of 27.54 based on Base Cash Flow Valuation (DCF) model

Penguin Solutions, Inc. has an earnings yield of 2.61%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Penguin Solutions, Inc. is overvalued relative to its fair value price of 9.34 based on Base EBITDA Valuation model

Penguin Solutions, Inc. has an EV/EBITDA ratio of 28.11x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Penguin Solutions, Inc. has insufficient data to evaluate this check.

Penguin Solutions, Inc. had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

Penguin Solutions, Inc. has a price-to-book ratio of 6.48x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Penguin Solutions, Inc. has a price-to-sales ratio of 1.96x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue